Adidas says profits hit by falling ruble, divestment

24 Jan, 2015

Adidas, the German maker of sportswear and equipment, said Friday it met its 2014 targets, but earnings were hit by special factors such as the falling ruble and the sale of its Rockport brand. Adidas said in a statement that full-year sales grew by 2.0 percent to 14.8 billion euros ($16.7 billion) in 2014, and bottom-line net profit "reached the earnings target of around 650 million euros".
Net profit was hit by "two non-operational items," CEO Herbert Hainer explained. These were 80 million euros in writedowns on its Russian business "as a result of the significant deterioration of the Russian ruble." In addition, the sale of its Rockport brand would hit profits by a "double-digit million euro amount" or tens of millions euros. Adidas had announced in an earlier statement that it agreed to sell its Rockport sportshoe brand in the United States to investment fund Berkshire Partners and New Balance for $280 million.

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